8.3. Is the assignor entitled to an input tax credit (or a reduced input tax credit) for the acquisition of the sales accounting or debt collection services?
For source of ATO view, refer to paragraphs 424 to 442 of GSTR 2004/1External Link - Goods and services tax: reduced credit acquisitions.
The fee for either service is consideration for an acquisition that relates to making financial supplies and so a full input tax credit entitlement will not arise for either service. However, to the extent that the particular debt collection activity is one that is referred to in item 17 of Regulation 70-5.02, that debt collection activity is a reduced credit acquisition and, therefore, the assignor may be entitled to a reduced input tax credit.